Microsoft And Sony Targeting 2014 For New Consoles, Leaving Nintendo In The Clear

Other sources with access to first-party companies, speaking to Kotaku anonymously because they aren’t authorized to be talking about Microsoft and Sony’s plans, said that they too are hearing that 2014 is the target date, though some believe 2013 could happen if either company feels pushed.

Our insider believes that any new Xbox in 2013 would only be a Kinect-upgraded 360, not the next-gen console that would come in 2014. That source says that Microsoft doesn’t even know what parts will be in the next Xbox. They say the company’s board “is wrestling with whether to be profitable on day one,” as Nintendo’s Wii was presumed to be, or to once again launch a new console at a loss, which is what Sony and Microsoft usually do.

A wait for a new Xbox or PlayStation until 2014 would make the Xbox 360 the lead Microsoft gaming console for nine years and the PlayStation 3 Sony’s chief console for eight. That would be an unusually long time for successful game consoles to retain their importance.

Microsoft launched the original Xbox in 2001 but quickly replaced the machine, which was expensive for the company to make, with the Xbox 360 in 2005. A more traditional console life-cycle would have positioned the Xbox 360 as Microsoft’s newest machine for five years, the length of time between the first two PlayStations, or six years, the gap between the Super Nintendo and the Nintendo 64.

“I think we’ll see a game of chicken between Sony and Microsoft,” industry analyst Billy Pidgeon of the firm M2 Research told Kotaku. “Sony definitely isn’t launching a successor before 2014 and could stand to benefit by having Microsoft launch first as PS3 builds in to North America and builds a strong position in Europe. Microsoft claims there’s a lot more room in Xbox 360 for developers to max out, but here PS3 could have a strong advantage.”

“Both MS and Sony are telegraphing to each other that they’re delaying.”

Pigeon believes Sony, in particular, has every reason to keep this generation going, to capitalize on the slow-launching PS3 and to maximize the “headroom” still available to developers on the powerful system.

Saying his company is “laser-focused’ on its current machines and next handheld, Sony PlayStation spokesperson Patrick Seybold declined to “comment on rumors or speculation” about the company’s future platforms.

Microsoft did not comment for this story by press time.

The slow recovery of the North American economy will also continue to discourage Microsoft and Sony from releasing new machines. “I don’t think either Sony or Microsoft are interested in a new console till they can advance the technology, and they certainly don’t want to launch at a $600 price point,” analyst Michael Pachter of Wedbush Securities told Kotaku. “It may take till 2014 to get 2TB hard drives, uber fast CPUs and state-of-the art graphics and sell at $400.”

The upshot of this is that it allows Nintendo to show its Wii successor to external game developers, as it is doing now, and to press, as it plans to do this June, according to industry sources familiar with the project, without worrying that it’ll be trumped by other consoles when it launches in 2012.

While the Wii has lagged behind the Xbox 360 and PlayStation 3 in terms of graphical horsepower, its next machine should bring it at least up to the level of technical muscle as its competitors. Should be a hit, then, according to Pidgeon, all this dawdling could end. “If Nintendo does very well with the next console,” he said, “Microsoft and Sony will quickly get a lot more serious about next generation.”